36
SECOND FANNIE
MAE NPL SALE
COMPLETED FOR
$765 MILLION
Fannie Mae announced the winning bid-
der for its second-ever sale of deeply delin-
quent non-performing loans (NPLs), which
included approximately 3,900 loans and closed
in late September.
e two larger pools in the transaction
totaled $765 million in unpaid principal bal-
ance (UPB), according to Fannie. e winner
of the two larger pools was Lone Star (LSF9
Mortgage Holdings).
"e goal of non-performing loans sales
is to be able to offer borrowers additional op-
tions to avoid foreclosure, while also reducing
the number of seriously delinquent loans in
Fannie Mae's portfolio," said Joy Cianci, Fan-
nie Mae's SVP for credit portfolio manage-
ment. "Our goal is to market these loans to a
diverse range of buyers, including nonprofit
organizations, smaller investors, and minor-
ity- and women-owned businesses."
Fannie Mae began marketing this NPL
transaction on July 16 in collaboration with
Credit Suisse Securities, Wells Fargo Securi-
ties, and the Williams Capital Group.
In addition to the two larger pools, this
NPL sale by Fannie Mae included a smaller
Community Impact Pool consisting of about
75 loans totaling $11 million in UPB. e
Community Impact Pool is a geographically
focused, high-occupancy pool marketed to
encourage minority- and women-owned busi-
nesses (MWOBs) to participate.
In May, Fannie closed its first-ever bulk
NPL sale. at transaction included approxi-
mately 3,000 deeply delinquent residential
single-family mortgage loans totaling about
$762 million in UPB. Freddie Mac recently
announced its sixth NPL transaction of 2015
(with $1.2 billion in UPB) and seventh overall
since July 2014. Freddie's previous NPL sales
have totaled approximately $2.76 billion in
UPB. e last one, completed on July 28,
included 3,577 deeply delinquent loans with
$591 million in UPB.
About 8.7 percent of residential
homes (4.4 million properties)
nationwide had negative equity as
of the end of the second quarter in
2015, according to CoreLogic.
KNOW THIS
